Update: Disaster Relief, IRS Extends Tax Deadline for Tornado Victims

July 2, 2020 | Brian Baker


By Brian Baker, CPA

This is an update to the article published June 24, 2020, “Disaster Relief: IRS Extends Tax Deadline for Tornado Victims.”

On June 30, 2020, the IRS issued another news release which significantly expands the relief available to taxpayers in the covered disaster area.  The filing and payment deadlines for certain returns and other time-sensitive acts to be performed by affected taxpayers are postponed to October 15, 2020.  To qualify, the return or other act must have an original or extended deadline falling on or after April 12, 2020 and before October 15, 2020.

What is the covered disaster area?

The entirety of Bradley and Hamilton counties in Tennessee is a covered disaster area.  Certain counties in Mississippi and South Carolina have received similar relief.

Who is an affected taxpayer?

Affected taxpayers include:

  • Any individual whose principal residence is located in a covered disaster area
  • Any business entity or sole proprietor whose principal place of business is located in a covered disaster area
  • Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered disaster area
  • Any individual whose principal residence, or any business entity or sole proprietor whose principal place of business is not located in a covered disaster area, but whose records necessary to meet a deadline for a specified act are maintained in a covered disaster area
  • Any estate or trust that has tax records necessary to meet a deadline for a specified act and that are maintained in a covered disaster area
  • The spouse of an affected taxpayer, solely with regard to a joint return
  • Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose records necessary to meet a deadline for a specified act are located in the covered disaster area
  • Any individual visiting the covered disaster area who was killed or injured as a result of the disaster

What types of returns and other acts are covered by this postponement?

This is not an all-inclusive list but some of the more common acts that are due to be performed on or after April 12, 2020 and before October 15, 2020 that are postponed to October 15, 2020 include:

  • Filing any return of income tax, estate tax, gift tax, generation-skipping transfer tax, excise tax (other than firearms tax, harbor maintenance tax, and alcohol and tobacco taxes), or employment tax
    • This includes Form 1040, Form 1041, Form 1120, Form 1120S, Form 1065, Form 706, Form 709, Form 720, Form 941 and associated estimated taxes
  • Paying any of the taxes specified above, including those subject to an installment agreement, but excluding excise and employment tax deposits
  • Making contributions to a qualified retirement plan
  • Filing a petition with the Tax Court, or for review of a decision rendered by the Tax Court
  • Filing a claim for credit or refund of any tax
  • Bringing suit upon a claim for credit or refund of any tax
  • Acts specified in Rev. Proc. 2018-58
    • This includes an extensive list of acts but a few common ones include filing Form 990, Form 5500 and Form 3115

If you have any questions regarding this relief or need to know whether a specific act is postponed that is not listed above, please call HHM at 423.756.7771.

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